SCIC discloses year-end income report

Hanoi (VNA) – The State Capital Investment Corporation (SCIC) recently announced its report for 2016 and plans for 2017, in which it claimed to have nearly doubled its 2015 post-tax income.

The company’s reported income for 2016 reached 15.8 trillion VND (713.9 million USD), accounting for 107 percent of its planned earning and 197 percent of its 2015 income.

SCIC’s rate of return on equity in 2016 was 19.9 percent, 1.24 times more than its annual target.

According to the company’s year-end report for 2016, its business goals were all surpassed and bettered in comparison with 2015.

These results were achieved through SCIC’s listing of Vietnam Dairy Products Joint Stock Company (Vinamilk), which sold 5.4 percent of total shares and earned nearly 11.3 trillion VND, 28 times more than the initial price. With each share being sold at 144,000 VND, SCIC raked in an added value of more than 800 billion VND, higher than the market price of 133.7 VND at the end of the session. Its total earning from the Vinamilk deal was valued at more than 11 trillion VND.

In addition to its sale of State capital for annual listed enterprises, SCIC also traded shares at several other major businesses following instructions from the prime minister’s office.

In 2016, the company successfully divested 73 businesses, with 71 being completely sold, and even took on 37 difficult ones, with total earning of 16.1 trillion VND (726.84 million USD) over the initial capital amount of 3.08 trillion VND. SCIC reached a 5.2 times rate of return and a recorded difference of 13.03 trillion VND for 2016.

Compared with the plan laid out at the beginning of the year by the Board of Members, the company witnessed great success and earned 4.5 times more than 2015’s results.

For the year 2017, SCIC has announced the path forward for major projects, such as a proposal for industrial scale vaccines production and a construction project on 29 Lieu Giai Street, Hanoi, for a high end residential, commercial and office complex.

The latter has been invested by the Ecology Investment and Development JSC with 50 percent of total capital, SCIC with 30 percent and Dai Hoang Long Company with 20 percent. The project is managed and operated by the Vietnam Investments Consulting and Construction Designing JSC, which has also completed the Vinhomes Metropolis project. Construction is currently ongoing at a swift pace.

SCIC also announced its investment in Thai Nguyen, Hoa Binh and Dong Thap provinces and its interest in projects needing investors, such as the Song Da 2 water factory, the Long Thanh Airport and the Lach Huyen commercial port in Hai Phong.

Regarding SCIC’s management, the company has made improvements to the inspection of state shareholders, as well as enhancements to businesses’ performance.

Established in 2005 and officially operational in 2006, SCIC functioned under directions from the prime minister and managed investment sectors with various businesses, such as financial, energy, technology and telecommunication, as well as construction, transportation, health care and household goods.-VNA